Summer Internship Report on Pepsico

“COMPARATIVE ANALYSIS OF SOFT DRINK (PEPSICO) DELIVERY SYSTEM BETWEEN READY BASE AND ORDER BASE IN TERMS OF SATISFACTION OF SHOP KEEPER AT BISTUPUR AND SAKCHI (JAMSHEDPUR)”

SUMMER INTERNSHIP PROJECT REPORT

COMPANY PROJECT GUIDE:

COLLEGE PROJECT GUIDE:

MR. SUBROTO CHAKRABORTY

PROF. RAJESH SHARMA

Udai Institute of Management Studies Jaipur BATCH: PGDM 2010-2012

SUBMITTED TO: PROF. RAJESH SHARMA

SUBMITTED BY: CHANDAN DAS

ACKNOWLEDGEMENT In any project one has to take cooperation and assistance of many people. It is difficult to mention all of them. However, it is necessary to quote some of them who provided initial support and assistance and having completed the project. It is indeed a great moment of pleasure to express my sense of profound gratitude & indebtedness to all the people who have been instrumental in making it a rich experience. I found it to be a challenging project that gave me a real practical exposure to the corporate world and it is almost impossible to do the same without the guidance of peoples around me. Specifically the summer training of from 20th of May to 20th of June that is generally termed as the partial fulfillment of my PGDM program holds extreme importance for my whole career

It gives me immense pleasure to acknowledge PEPSI CO PVT Ltd., which has been nice enough to give me a chance to do my summer training and providing me wonderful support through out my training period and afterward.

I am grateful to Mr. P.S. Kumar (Director), SMV Beverage Jamshedpur for giving me a chance to do my summer training in SMV Beverage PVT Ltd INDIA, I am grateful to Mr. Subroto Chakraborty(T.D.M) have learned the meaning of marketing and professionalism from this great personality.

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I am grateful to Smt. Mukti Rani(HR Manager) of S.M.V. Beverages I his exceptional support for my study throughout these 4 weeks. I also owe my regards to Mr. Ravi Bhaskar (CE) and Adarsh agency (Distributor) for their co-operation in the successful completion of the project. I am also grateful to my internal project guide Prof. Rajesh Sharma, UIMS Jaipur, for giving his guidance through out my training project. The entire experience has been very encouraging and will certainly help me stand in good stead throughout my career in future. I am also thankful to my college director Dr. Neeran Gautam and whole UIMS family for giving me chance to get such an experience and giving me chance to get an industrial experience.

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PREFACE In this global and competitive era all business activity needs more complex superior and enhanced technology. The Beverage industry has been growing tremendously in past few years in the present scenario the beverage industry become more consumers oriented. Research becomes a necessary for business activity to accelerate the business in a greater pace. Researcher shows the current position as well as strength and weakness of an organization and product, which helps in the formation of business plan. In the other hand opponents are waiting for us to take erroneous decision and take advantages of the situation. I can counter their move only through dynamic and effective tool of marketing research. So it was a great pleasure to contribute to the dynamic field of marketing in the Beverage industry. The name Pepsi co itself is a multinational Brand which does need any sort of introduction, this brand has been positioned in the mind of customers very well.

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EXECUTIVE SUMMARY: PepsiCo organization initiated this project to assess the market potentiality of Pepsi in the present market. The main motive of this project is to identify the potentiality of the Pepsi and their other product those they are producing. The project methodology involved carrying out the preliminary research to gain insight into the present market

sub segment, current trends, growth, players and

potential. Analyzing the requirement and designing questionnaire. Taking interviews, conducting personal interviews of different type of demographic factors under like age, income, status. Collating & analyzing data and identifying leads that qualifying for an offering and formulating recommendation for S.M.V. Beverage Jamshedpur. In the findings researchers got that Pepsi company is one of the best soft drink company, because it maintain the quality, taste and also the Company is maintain good relationship with retailers and they are also distributing their product to their retailers when they want and the Company also provide them in time. Theory is important, because it enhances our understanding of business phenomena and helps managers to think about what they should do. Summer training or internship training program provides opportunities to apply this theory into the real business practice. In the present scenario of competitive marketing, every business institution requires to prepare strategies for efficiently utilizing their available resources and environmental opportunities. At this stage of my learning process I also feel needs for knowing different business strategies that a business organization follows. In this training period I got opportunities to study on some marketing strategies of PepsiCo. And in this report I am going to explain some of those strategies which I had applied in practical during my summer training program.

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CONTENT

PAGE NO 1. Cover Page 2. Faculty guide Certificate 3. Acknowledgement

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4. Preface

3

5. Executive Summary

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6. Table of Index

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A. Introduction a. Introduction to Industry and Company

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b. Introduction to Topic

21

B. Research process

44

1. Review Literature

49

2. Hypothesis

50

3. Data analysis and interpretation use of statistical tools

51

4. Conclusions & findings

59

5. Recommendation

60

6. Limitations

61

7. Annexure

63

8. Bibliography

65

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INTRODUCTION PepsiCo organization initiated this project to assess the market potentiality of Pepsi in the present market. The main motive of this project is to identify the potentiality of the Pepsi and their other product those they are producing. The project methodology involved carrying out the preliminary research to gain insight into the present market, sub segment, current trends, growth, players and potential. Analyzing the requirement and designing questionnaire. Taking interviews, conducting personal interviews of different type of demographic factors under like age, income, status. Collating & analyzing data and identifying leads that qualifying for an offering and formulating recommendation for S.M.V. Beverage Jamshedpur. In the findings researchers got that Pepsi company is one of the best soft drink company, because it maintain the quality, taste and also the Company is maintain good relationship with retailers and they are also distributing their product to their retailers when they want and the Company also provide them in time. Theory is important, because it enhances our understanding of business phenomena and helps managers to think about what they should do. Summer training or internship training program provides opportunities to apply this theory into the real business practice. In the present scenario of competitive marketing, every business institution requires to prepare strategies for efficiently utilizing their available resources and environmental opportunities. At this stage of my learning process I also feel needs for knowing different business strategies that a business organization follows. In this training period I got opportunities to study on some marketing strategies of PepsiCo. And in this report I am going to explain some of those strategies which I had applied in practical during my summer training program.

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KEY AREAS The key area of my summer training was Ready base & Order base delivery system in terms of satisfaction of shopkeeper at Bistupur and Sakchi (Jamshedpur). The company had divided his retail outlets on the basis of area wise and character wise. Each of the division is having mainly three types of outlets. AREA WISE: - The area of my summer training was Jamshedpur and according to the company the whole training area was divided into three parts. INNER CIRCLE: - These are the main selling point of a company or heart of a city. In inner circle I mainly consider those selling point or retailers shops which come under the main market area. OUTER CIRCLE: - These areas are adjacent to the main market area, which is a mixture of residential areas and market areas. In these areas I mainly talk about those retailers shops, which are place d in the residential areas and quite away from the main market... OUTSKIRTS: - These areas are quite away from the main city and the main market, or the interior areas of the towns. CHATACTER WISE: - Again there is a division of outlets on the basis of characters (Type of work done by the retailers) and there are again three types of outlets. CONVENIENCE OUTLET: - These types of outlets include general stores, beetle shops, stationary shop, medical shop and such type of other shops. GROCERY OUTLETS: - These types of outlets include grocery stores which indulge in selling of foods and related things used in the home. EATERY: - It includes restaurants, fast food joints etc.

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PEPSI CO Mission and Vision At PepsiCo, I believe being a responsible corporate citizen is not only the right thing to do, but the right thing to do for our business.

Mission Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. I seek to produce financial rewards to investors as I provide opportunities for growth and enrichment to our employees, our business partners and the communities in which I operate. And in everything I do, I strive for honesty, fairness and integrity.

Vision "PepsiCo's responsibility is to continually improve all aspects of the world in which we operate environment, social, economic - creating a better tomorrow than today." Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

Guiding Principles We must always strive to:

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

Care for customers, consumers and the world we live in



Sell only products we can be proud of



Speak with truth and candor



Balance short term and long term



Win with diversity and inclusion



Respect others and succeed together

Type: Public (NYSE: PEP) Founded: 1965 Headquarters: New York, USA Key people: Indra Nooyi, Chairman, President & CEO Industry: Food and beverage Products: Pepsi Tropicana Products Gatorade Lay's Doritos Frappuccino (for Starbucks) Mountain Dew Operating income: $9.51 billion USD (2011) Gross Profit margin: 57.8% Employees: 153,000(2005)

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GROUP OF COMPANIES: Frito- Lay North America PepsiCo Beverages North America, PepsiCo International Quaker Foods North America

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SOFT DRINK INDUSTRY IN INDIA India with a population of more than 1.1 billion is potentially one of the largest consumer markets in the world after china. The consumer market is popularly known as the FMCG market or the fast moving consumer goods market. Soft drinks come under this category. Soft drink is basically purchased in India basically for two reasons namely to quench thirst and for refreshment. The Indian economy currently is passing through a bullish phase with increasing per capita income. Subsequently the lifestyle of the Indian consumer is also changing with increased spending on entertainment, refreshment etc. that is why soft drink companies are looking forward to India with great enthusiasm in the future to increase their revenue. The soft drink industry in India dates back to the 1940’s when Parle introduced the first branded soft drink called gold spot. Cola giant coca-cola was the first foreign soft drink company to setup its shop in India in 1965. Coca-Cola made a very good beginning and dominated the market right from the word go. It faced no competition at that time. The marketing people did not even need to publicize coca- cola. This extraordinary success of coca-cola can be attributed to the following factors,  Absence of contemporary competitive brand.  The giant image of coca-cola in the western countries preceded their entry into the Indian market.  Indians at that time were very fond of foreign goods.

Parle Exports Pvt. Ltd later introduced a lemon flavored soft drink called Limca in 1970. Before this they had introduced a cola flavored drink called pepping which

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they had to withdrew in the face of stiff competition from coca- cola. But the overtly conservative Indian government of that time with special interest in safe guarding the interest of the Indian companies star ted insisting that coca-cola should agree on the following points in order to continue in India. Coca-cola decided to windup its operations in 1977 rather than bowing to the Indian government. The main demands of the Indian government were,  Dilution of equity, as the government felt that lots of foreign currency was being wasted.  Manufacturing of the secret concentrate in India.  Disclosure of the chemical composition of the concentrate. The exit of coca-cola left a large vacuum in the soft drink market. But this also accelerated the growth of several Indian soft drinks. Many new soft drinks like Frooti, jump- in etc were launched in the form of tetra pack. However the bottling plants and the distribution networks of these companies were not up to the mark and left much to be desired. It took these companies almost one year to come up with new flavors like Campa cola, Rush etc. to survive in the industry. However Parle, the pioneer in the soft drinks market blazed its way to national prominence with their product Thumps Up bearing the slogan µhappy days are here again which became a craze. This particular slogan helped to win over the loyalists of coca-cola who were in a state of cola shock or cola depression! Soon the soft drink industry started registering phenomenal growth rates and all parley products namely Gold Spot, Limca and Thumps Up became the brand leaders in their own segments. In spite of this the soft drink market had a huge untapped potential. In 1990, coming of the multinational brand Pepsi and immediately started giving stiff competition to Parley and Coke. The parent company of Pepsi was founded in 1890 at

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North Carolina in USA. Its CEO is Roger Enrico. Pepsi Co India Holdings Pvt. Ltd. In headquartered in Gurgaon and its CEO is Ms. Indra Nyui. In India it has 34 bottling plants of which 8 are company owned bottling outlets (COBO) and 26 are franchise owned bottling outlet (FOBO). SMV Beverages is a franchise owned bottling outlet. Coca-cola reentered the Indian market in 1993 in collaborations with Parley India Ltd.

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PEPSICO IN INDIA PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government- owned Punjab Agro Industrial Corporation ( PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. Others claim that firstly Pepsi was banned from import in India, in 1970, for having refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards. These controversies are a reminder of "India's sometimes acrimonious relationship with huge multinational companies." Indeed, some argue that PepsiCo and The Coca- Cola Company have "been major targets in part because they are well-known foreign companies that draw plenty of attention." PepsiCo has grown to become one of the country’s leading food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India. PepsiCo India and its partners have invested more than U.S. $1 billion since the company was established in the country. PepsiCo provides direct and indirect employment to 185,000 people including suppliers and distributors. PepsiCo India Holdings Pvt. Ltd. operates through its subsidiaries including Pepsi Foods Ltd, Frito- Lay India, and Tropicana Beverages Company. The company, through its subsidiaries manufactures, bottles, and exports fruit juices and carbonated beverages and packaged snacks such as Lays, Ruffles, Fritos, and Cheetos. PepsiCo India is based in Gurgaon, India.

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Pepsi Co nourishes consumers with arrange of products from treats to healthy eats that deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Miranda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinksGatorade, Tropicana100% fruit juices, and juice based drinks - Tropicana Nectars, Tropicana Twister, Slice, and the new brand Nimbooz by 7up with real lemon juice. Local brands-Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands. In snacks segment-PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans- fat and MSG. It manufactures Lay’s Potato Chips; Cheetos extruded snacks, Uncle Chips and traditional snacks under the Kurkure and Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets. The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants.

Pepsi Co’s business is based on its sustainability vision of making tomorrow better than today. PepsiCo’s commitment to living by this vision every day is

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visible in its contribution to the country, consumers and farmers. Pepsi Co India's agri-partnerships with farmers help farmer s across the country grow and earn more.

Pepsi Co's involvement in Indian agriculture stems from its vision of creating a cost-effective, localized agri-base in India by lever aging farmers access to world class agricultural practices. PepsiCo India worked with farmers and State Governments to improve agri sustainability, crop diversification and raise farmer incomes. Pepsi Co helped transform the lives of thousands of farmers by helping them refine their farming techniques and raise far m productivity, and customized solutions to suit specific geographies and locations.

The most ambitious project is a joint program, launched in 1989, between PepsiCo India, the Punjab Agriculture University (PAU) in Ludhiana and Punjab Agro Industries Corporation (PAI C) in Chandigarh. The program focuses on evolving agricultural practices to help Punjab farmers produce internationally competitive products. Over the last five years, PepsiCo has also collaborated with the Thapar Institute of Technology to develop a high quality potato seed program. PepsiCo was a pioneer in the concept of contract farming under which the company transfers agricultural best practices and technology and procures the Produce at a guaranteed price. To support the initiative, PepsiCo set up a 27-acre research and demonstration far m in Punjab to conduct far m trials of new varieties of

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tomato, potato and other crops. The program, which includes seed production, has successfully evaluated the following crops,  Several varieties of basmati rice more than 200 varieties and hybrids of chilli  25 varieties and hybrids of corn  More than 60 varieties of peanut  More than 100 varieties and hybrids of tomato.  Additionally, the development of new tomato varieties has helped increase total annual.  Production of tomato varieties from 28,000 tons to over 200,000 tons in Punjab. Yields

Additionally, the development of new tomato varieties has helped increase total annual production of tomato varieties from 28,000 tons to over 200,000 tons in Punjab. Yields have more than tripled from 16 tons to 54 tons per hectare. Under the program, 6 high-qualities, high- yield potato varieties have also been introduced to Indian farmers. These new potato seeds have helped to increase far m income and enabled PepsiCo to procure world class chip-grade potatoes for its Frito Lay snacks division. The company has partnered with more than 10,000 farmers working in over 10,000 acres across Punjab, U.P., Karnataka, Jharkhand West Bengal, Kashmir and Maharashtra for the supply of potatoes. PepsiCo India has also partnered with 1,200 farmers in Rajasthan to cultivate barley in a tie up with the United Breweries Group. PepsiCo India’s technical team also implemented a high quality seed program to deliver early generation and disease free seeds to farmers.

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Tropicana- Tropicana product is an American based company, and was founded in 1947 by Anthony T. Rossi in Bradenton, Florida, USA. Since 1998, it has been owned by PepsiCo, Inc. Pepsi offers the wide variety of products to meet the choice and preference from fun for your items to the products choices that contribute to healthier life style.

KEY DEVELOPMENTS FOR PEPSICO INDIA HOLDINGS PVT. LTD.

PepsiCo India Holdings Pvt. Ltd. Launches Packaged Nimbu Paani 'Nimbooz by 7Up' PepsiCo India Holdings Pvt. Ltd. has launched its packaged nimbus paani 'Nimbooz by 7Up'. The product, with real lemon juice, no fizz and no artificial flavors, will be available in three packaging formats of 200 ml returnable glass bottles, 350 ml PET and 200 ml tetra packs, priced at INR10, INR 15 and INR 10 respectively. PepsiCo India Holdings Pvt. Ltd. t o Launch Lemon Drink PepsiCo India Holdings Pvt. Ltd. is expanding its product portfolio in India in the lemon drinks category and has plans to introduce a product under 7up brand ahead of the summer season. The new product would be less carbonated and is targeted at the mass market for on-the-move consumers.

Headquarter: New York, U.S. Area served: Worldwide.

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Industry type: Food and non alcoholic beverages. Products: Pepsi, Diet Pepsi, Mountain dew, 7up, Mirinda, Slice, Tropicana Products: Nimbooz juice, Aquafina, Fritos, Cheetos, and Lays. Key person : Indra Krishnamurthy Nooyi (president), and (CEO).

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ORIGIN OF SOFT DRINK IN JAMSHEDPUR Late Charan Singh is credited with initiative to set up Soft drink industry in the city. He was a resident of Phagwara, Punjab and he used to sell soft drink in carts Domestic tension forced him to march to Jamshedpur 50 year s ago to seek a living for him. Then he set up his own machine and started bottling without any brand name. Today his son Mr. Sundar Gurudev is carrying out the legacy, which his father had left behind. This plant operates only 3 months (summer). Even today Jamshedpur remembers the great exponent THANDA WALA. The credit of establishing Jamshedpur in the soft drink map goes to late Dharamchnd Kamani. During the course of his business trips he was struck with the idea of setting up of a soft drink industry in Bihar. June 1967 was significant for soft drink industry in Jamshedpur.

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S.M.V. BEVERAGES Pvt. Ltd. SMV Beverages Pvt. Ltd., Jamshedpur is a franchise owned bottling plant (FOBO) is located on the Tata Kandara road in Adityapur Industrial Area at Jamshedpur and producing Pepsi range of bottled soft drinks, viz. Pepsi, Mrinda, 7up, Mountain Dew, Slice and Soda and it has now become a house hold word in the state of Jharkhand. The previous name of SMV was STEEL CITY BEVERAGES, but in March 1999 steel city beverage taken over by Mr. S. K. Jaipuria from Mr. N. K. Kamani along with Rushab Marketing company. He was very much enthusiastic to increase the production and sales and to nature the whole market of Jhar khand. He established another plant in the same name of SMV Beverages Pvt. Ltd. And increase the production from his new plant is 600 bottles per minute. Simultaneously a new market came in name of Hyderabad Marketing Company, which is creating the needs of whole Jharkhand state. The company symbolizes self reliance in technology and ranked as the best bottling company of the country in terms of quality, efficiency, and productivity. Till 1998 it was under its chairperson Smt. Kokum Kamani and the country has constantly bagged numerous awards in various occasions for quality assurance and productivity. In 1993 it bagged top honor s for the best quality conscious plant among all the Pepsi bottling companies in India. Steel City Beverages Pvt. Ltd. Was established in the year 1967 and production commenced in March 1969. At the very start company installed state of art machines and technology for the production and bottling of soft drink. The bottling plant with a capacity of 220 bottles per minutes was totally automatic and also had a modern State of art inter mix machine for bringing forth the right blend of flavors. The company constitutes to adopt innovative technology in keeping with its policy of constant

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entered into an agreement with Pepsi food limited for the production and sales of soft drinks for the people of Jharkhand. Right now there is only one bottling plant of Pepsi in Jharkhand and it cater the need of all the Pepsi products in Jharkhand. Entire state is divided into three territories Jamshedpur, Ranchi, and Dhanbad, and one territory development officer controls each territory.

ENVIRONMENT SCANNING: The process by which organization monitors their relevant environment to identify opportunities and threats affecting their business are known as environment scanning. The external environment in which S.M.V. Beverages Pvt. Ltd. exists consists of a bewildering variety of factors. These factors (may also be termed as influences) are events, trends, issues, and expectation of different interested groups. These factors are explained below.  Events are important and specific occurrences taking place in different environment sectors  Trends are the general tendencies or the courses of action along which events takes place  Issues are the current concern that arises in response to events and trends.  Expectations are the demands made by interested groups in the light of their concern for issues By monitoring the environment though environmental scanning, the S.M.V. BEVERAGES Pvt. Ltd. considers the impact of the different events, trends, issues, and expectation on its strategic management process. Since the environment facing organization is complex and its scanning is absolutely essential, strategist has to deal cautiously

with

the

process

of

environmental

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scanning

is

collected

systematically. Information related to markets and customers, the changes in legislation and regulations which have a direct impact on an organization’s activities, government policy statements pertaining to S.M.V. BEVERAGES Pvt. Ltd. business and industry and soon, could be collected continuously to monitor changes and take the relevant factors into account S.M.V. BEVERAGES Pvt. Ltd. conducts special surveys and studies to deal with specific environmental issues from time to time. Such studies may be conducted, for instance, when S.M.V. BEVERAGES Pvt. Ltd. has to undertake special projects, evaluate existing strategies, or devise new strategies. Changes due to unforeseen development may also be investigated with regard to their impact on the organization. Today S.M.V. Beverages Pvt. Ltd. stands as a proud monument the great visionary its founder Late D.N. Kamani and strides forth towards progress and prosperity for the fulfillment of the ideas of its revered founder.

ONE DAY IN PEPSI PLANT In summer, when the mercury level crosses 40ÛF we wish to have ice creams or cold drinks only. And it is as like a dream, if one gets the chance to visit the production unit of a cold drink plant, and also gets opportunity to have cold drinks without any limit and cost on such a hot day. Tuesday, 19th of May 2009 was one of the hottest days in Jamshedpur of this year’s summer and also a dream’s day for me when I got such an opportunity to visit the production unit of Pepsi of S.M.V. Beverages Pvt. Ltd. Jamshedpur. Here I want to share my experience of visiting the production unit of Pepsi and knowledge I gained after seeing the production processes of

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different brands of Pepsi. But before going into the deep I would like to thank Mr. Dhananjay Kumar (M.E), who changed the hottest day into my dream’s day and also to all staffs of S.M.V. Beverages Pvt. Ltd. Jamshedpur for guiding me during this visit and sharing their vast knowledge and experience with me.

Pepsi production process: Any cold drinks (soft drinks) generally contains  Water  Sugar  Flavors or fruit pulp  Chemicals  CO2 gas (in carbonated soft drinks)

The below four ingredients are added with the first ingredient i.e. water and cold drink is prepared. Here in S.M.V. Beverages Pvt. Ltd. Jamshedpur also the same ingredients are used to prepare Pepsi and its other brands.

All these ingredients are added at

different stages by different processes. The diagram in the next page represents the flow or sequence of steps involved in S.M.V. Beverages Pvt. Ltd. Jamshedpur for manufacturing of Pepsi products. Pepsi products are available in different SKUs (stock keeping units) or packs, e.g. glass bottle, pet bottle, metal can, tetra pack etc. the preparation of main liquid or drink is same but the machines and equipments used for filling in different SKUs are different.

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During my visit to S.M.V. Beverages Pvt. Ltd. Jamshedpur, I saw  Water treatment plant, where water is purified.  Bottle washing plant, where used glass bottles are washed.  Syrup room, where syrup is prepared from sugar.  Bottle filling plant, where bottles are filled with the final product.  Acid room, where caustic soda is kept, which is used for cleaning the equipments and pipelines after every batch of production.  Yard for keeping empty bottles and ware houses for storing the filled bottles.

The brief introduction of each Plant is given bellow:

Water treatment plant: Water in S.M.V. Beverages Pvt. Ltd. Jamshedpur, is coming from the Sitarampur dam on the Kharkai River. It is stored in a reservoir. This raw water is being treated in the water treatment plant, before the production process starts. Coagulation process is used here for this purpose. Main chemicals used are ferrous sulphate (FeSO4), calcium hydroxide (CaOH) and chlorine (Cl). Initially water is treated with all these chemicals in the treatment tank and becomes turbid. All the impurities get settled at the base and remove the turbidity. Then, it is sent to the carbon tank where all the microorganisms and chlorines are removed. The water so obtained is completely free from any kind of impurities and used in further processing. The maximum alkalinity maintained until as much as 50 ppm.

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Bottle washing plant: Used bottles returning from the market are stealthy.

Before filling these empty

bottles with new product, these bottles are passed through the bottle washing plant where these dirty bottles are washed.

It is completely an auto process which takes

place within a machine called washer machine. The machine has three compartments. Bottle for washing are placed on the conveyer come inside the machine and get successive treatment. Bottles are treated with 4% caustic soda in the first compartment at a temperature of 100-150Û C. Next these are conveyed to the second compartment, where bottles are again washed with hot water at a temperature of 80-100Û C, in the third compartment bottles are treated with cold or normal water at room temperature. Time duration in each compartment is 10 minutes. Bottles are then sent through the inspection center, where these are closely watched against white rays of light. Bottles containing any dust or other unwanted things are removed from the line here. Syrup room: Here syrup is prepared. Syrup is prepared by flowing steam and sugar crystals in a specified ratio into closed container. The temperature of this prepared sugar remains between 80-100ÛC. This syrup contains some impurities as, sometimes there are some impurities presents in sugar, so this syrup is filtered to remove all those contaminations. Before storing in syrup tanks this syrup it is passed through the cooler where syrup temperature is reduced to 25-30ÛC. This temperature is maintained throughout the whole process. Here next flavors are added at a specified quantity with the syrup used for preparation of Pepsi or other brands.

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Bottle filling plant: Next, for preparation of carbonated soft drinks brands like Pepsi, Mirinda, 7UP, and mountain dew, carbon dioxide gas (CO2) is mixed with this prepared solution. And for the brand like slice, fruit pulp is added. Now the solution is ready for filling into the bottles. The washed empty bottles are filled by automatic filler machine. This machine can fill 60 bottles in one minute. After filling, crowns or caps are fitted on the filled bottles with the help of crowning machine. Now these filled bottles are ladled and then sent for packing and storing in the godowns. Acid room: There are three tanks in this room. The first tank contains caustic soda, the 2nd tank contains hot water and the third tank contains cold water. After finishing ever y batch of production the whole production lines and containers/tanks are washed. And for this purpose, first of all caustic soda is passed through the pipeline, next hot water and at the last cold water. Yard for keeping empty bottles: S.M.V. Beverages Pvt. Ltd. Jamshedpur has a large area in side its premises. A large Part of its open area is used for keeping the empty bottles. Warehouse: S.M.V. Beverages Pvt. Ltd. Jamshedpur has its own warehouse in side its premises for storing the produced products. The produced products are sent to the customers from these warehouses. For transferring the filled bottles inside the company for klifts are used.

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PEPSICO PACKAGING PROCESS PepsiCo is an industry leader in packaging- helping to promote and implement standards for sustainable packaging.

PepsiCo distribute the products in a variety of packages, each carefully designed to deliver convenience and appeal to the consumers while protecting the integrity of the products. The team of engineers and packaging suppliers are dedicated to finding prefer able designs, and are working continuously towards

improving

the

packaging performance while reducing the packaging

footprint. PepsiCo are committed to bringing the environmental responsibilities to all areas of the business. PepsiCo are continuously improving

the

environmental

programs and exploring solutions to environmental challenges through socially responsible, scientifically based and economically sound methods. Pepsi pass this commitment along to his suppliers and the consumers in an effort to do our part.

The

goals are

to

design

and develop packaging systems

that are

environmentally responsible throughout their entire life cycle, inspire consumers who want to live more environmentally sustainable lives by promoting recycling, and partner with leading organizations to promote sustainable packaging and recycling practices. Through ongoing engagement with the packaging suppliers, I are working towards a position where all of our operations use the most environmentally suitable packaging available in their country of operation.

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Pepsico follow five principles of sustainable packaging design: Reduce: Using less material in the packaging, to conserve natural resources. Reuse : Increasing use of reusable packaging and increasing the amount of recycled material in the packaging. Recycle: Designing packaging for recycling and developing biodegradable and

compostable packaging solutions. Remove: Eliminating environmentally sensitive materials and processes from the

packaging. Renew : Increasing use of renewable resources.

In an effort to meet his goals, PepsiCo have launched a global sustainable packaging policy and formed a Sustainable Packaging Council dedicated to:

 Developing sustainable packaging strategies, goals, and targets  Developing alternative packaging material technologies  Supporting responsible disposal practices

Using Less Material in our Packaging

Although beverage containers are the most recycled consumer packaging in the United States ± and they are designed for recycling, I continue to look for ways to reduce the amount of packaging used for the products. And I are achieving success. PepsiCo scientists and packaging specialists have led the way in

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reducing

packaging

materials through cost-effective changes in design and

production, known in the industry as "light- weighting." Light-weighting reduces the amount of raw materials and energy used to make our packages and generates less waste after the products are enjoyed. PepsiCo introduced new packaging for half- liter bottles of Lipton iced tea, Tropicana juice drinks, Aquafina Flavor Splash and Aquafina Alive that contain at least 20 percent less plastic than the original package. Aquafina has trimmed the amount of plastic used in its most popular bottle - the half-liter (16.9 oz) bottle by 35 percent since 2002. This saves more than 50 million pounds of plastic annually. Aquafina's half-liter bottle weight has changed from 15 grams to 13.2 grams putting it among the lightest water bottles on the U.S. market. Reducing and Recycling the Waste

At Frito-Lay, route sales employees return empty cartons from stores to our plants for reuse or recycling and delivery boxes are used an aver age of six to seven times, saving nearly 5 million trees a year and keeps 56 million pounds of cardboard away from landfills. For Frito-Lay's North American and Inter national products, Frito-Lay recycles packaging film waste from our suppliers' sites for use in various other products (park benches, boards, etc). Our Quaker Oats facility in Cupar, Scotland has reduced the amount of corrugate used by 30% over the past 5 years by moving to cases with open tops and reduced sides. Over the last five years, PepsiCo U.K. has reduced the amount of plastic used to make Tropicana and Copella juice bottles by 18 percent. In Mexico, our snack business saves more than 100 million boxes per year by using every box about seven times between the distribution center and point of sale. By recycling our boxes up to seven times, we save on average each year about 45,000 trees, 1,800,000 mz of water

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and 1,620,000 liters of fuel. The Latin America Beverages business has optimized beverage packaging projects across Mexico, Peru, Columbia, Bolivia, Brazil, Argentina, Honduras and Guatemala, resulting in the removal of over 800 tons of packing annually, specifically reducing the need for PET resin for bottles, corrugate boxes, bottle-top closures and glass.

The average Pepsi

bottle contains 10% recycled plastic, more than any other national soft drink brand. Pepsi-Cola's bottles and cans are among the most recycled packages made since 1990; more than 150 billion Pepsi container s have been recycled. Across all our U.S. divisions, initiatives conducted in 2007 to reduce packaging have resulted in more than 20 million pounds of material reduction across PET bottles, paper board and corrugated materials.

EVERY DEALER SURVEY (EDS) The design of competitive marketing strategies begins with competitor analysis. The main competitor of PepsiCo is Coca- Cola. In market I see three types of outlets where cold drinks are sold; those are exclusive outlet of PepsiCo, exclusive outlet of Coca - cola and mixed outlet of PepsiCo and Coca - cola. Every Dealer Survey refers to the survey of all the three types of outlets of a market segment. I n this survey I collect the data of various promotional and selling tools (case stock, number of glow sign, dealer board, bunting etc, and number of visicooler) provided by PepsiCo as well as Coca - cola present at the outlets. Dealer survey is primary method by which on gets first hand information with respect to the following factors:

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Knowledge of market in terms of:

 Name and number of dealers  Location of dealers.  Type of dealers.  Market output i.e. case stock, number of glow sign, dealer board, bunting etc, and Number of visicooler. Distribution Effectiveness:

From the dealer survey I can find out the number of dealer s and the stock and the other details. Non buyers also are located. Activation of non buyers should be done immediately. With the above knowledge on can increase the number of routes to get increased dealers coverage and hence also increased more effective sales. Also details of this have help to check upon the route selling of salesman, so that I can control them by closely monitoring their performance. Training group for future executive:

Good investigation from these surveys can be recruited to take up future jobs. These people will ideally suitable, as they would know the market thoroughly.  They should visit the counter on the daily basis including the remote areas.  Salesman should visit to every outlet on weekly basis.

How to increase distribution effectiveness:

 After the above survey, the company can improve the distribution network.  Immediately activeness of non- buyers.

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 Improve the dealer coverage.  Increase the realignment of routes.  Better control thorough route card. 

Availability of goods on time.

Therefore, Every Dealer Survey is important keeping in mind that distribution forms the major marketing activity in our industry and also that through these survey one acquires knowledge of the market. It should also be added here that continuous dealer surveys are required because of the following reasons.  As our turn over increases I require skills to tackle problem and dealer survey help in acquiring first hand as to use the skills effectively.  With our increased growth, investment of money has increased for various marketing inputs e.g. case stock, advertising, merchandising etc. and by survey I can get an indication of the areas in which investment should be made to get the maximum benefits.

Importance of EDS (Every Dealer Survey): Market Knowledge: Dealer survey gives the total profile of the market by knowing  Location of dealers.  The type of dealers.  Number of dealers who keep Pepsi and Coca cola and comparing the stock and awareness of brand.  Take the information about distribution process of company.

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 Take the information from dealer that which brand of product is more popular or consumed.  Gather the information about scheme which is given by company to dealers.  The marketing inputs with respect to:-

i.

Advertising

ii.

Vise cooler size

iii.

Customer service

Though PepsiCo has entered the market only 15 years ago but it has captured a big market share and ends the monopoly of Coca cola, which has ruled for 13 years. This survey enabled us to know,  How many exclusive outlets PepsiCo. , Coca cola and how many mixed outlets of brands are there in a particular market segment?  What are the promotional kits present at all these three types of outlets provided by PepsiCo and Coca cola?  What are the gaps? I.e. what are those promotional tools, which can be used to increase the sale of PepsiCo?  How retailers can be motivated to sale PepsiCo. products instead of Coca cola? Apart from these, this survey also provide us the information about the sales every outlets. And this report is useful for planning or taking decisions about how much amount should be spent for sales promotion for each outlet. From these aspects I can know how good I am in the market place and those areas where I are lacking. It also helps us to find out that in some place or areas were the competitors brand is only available, then by the help of survey I can find out the

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reason behind the non availability of PepsiCo products in that specific area. The knowledge of case stock will indicate our “case-in trade” and that of competitors. This will also indicate our “case velocity” which helps to plan our bottle as well as whether our distribution is effective or not. If our case stock is low then we may decide upon a “case stocking” campaign. Therefore, appropriate marketing strategies can be worked out depending upon the findings. PLAN -O- GRAM PEPSICO STRATEGY PepsiCo provides visicoolers (Refrigerators fitted with glass door) to Pepsi outlets, so that the retailers can provide chilled Pepsi drinks to consumers. This also increases the sale of Pepsi Products. Visi- Coolers are of various sizes for instance 165 L, 200L, 220L, 300L, 400L, 440L, 650L, 1200L, and so on. Plan-O-Gram is the process of filling of visi-cooler with Pepsi products i.e. 7UP, Mirinda, Slice, Mountain Dew, Aquafina, and Tropicana fruit juice according to the sequence prescribed by PepsiCo. As per the research conducted by PepsiCo, Pepsi is the most selling brand followed by 7UP, Mirinda, Mountain Dew, and Slice. And on the basis of this research PepsiCo has developed a sequence of different brands fro filling up the visicooler and also for placing into the shelves. Sequence is as under: 7UP > Mirinda > Mountain Dew > Slice > Aquafina Pepsi products are available in glass bottles, pet bottles, metal cans, and tetra packs. The number of bottles, cans and packets filled in visi-cooler.

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Objectives  To keep the visi cooler pure.  To attract consumers by displaying their favorite brands or to help the consumers in finding their favorite flavor and brand.  To attract consumers by displaying different brands.  To promote the sales of all flavors or brands.  To motivate the retailers for effective utilization of visicooler fro selling Pepsi brands  To beat the competitors and to lessen the sale of substitute brands available in the market.

DISTRIBUTION CHANNEL My field of study will look into the following aspect:- Market research on distribution strategy. The main purpose of trade is to supply goods to the consumers living in far off places. As goods and services moves from producer to consumers they may have to pass through different individuals. The middlemen are the connecting links between producers and consumers. They perform different functions such as buying, selling, storage, etc. the middlemen constitute the channel of distribution of goods. Thus, a channel of distribution is the route or path along which goods move from producers to ultimate consumers. The rout taken by goods as they move from producers to consumers is known as Channel of Distribution.

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From the below diagram I can sea that there is just one direct channel i.e. from producer to the consumer. There are many indirect channels like: 1) PRODUCER > DISTRIBUTER > RETAILOR > CONSUMER 2) PRODUCER > CONSUMER 3) PRODUCER > DISTRIBUTER > CONSUMER

PRODUCER

DISTRIBUTER

RETAILER

CONSUMER

If the producer is producing the product on large scale, it may not be possible for him to sell goods directly to consumers. As such, it sells goods through middlemen. These middlemen may be wholesalers or retailers. A wholesaler is a person who buys goods in large quantity from producers: where as a retailer is one who buys goods from wholesalers and producers and sells to ultimate consumers as per there requirement. The involvement of various middlemen in the process of distribution constitutes the indirect channel of distribution. Let us look in to some of the important indirect channels of distribution.

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DISTRIBUTOR Distributors are one of the important middlemen in the channel of distribution who deals with the goods in bulk quantity. They buy goods in bulk from the producers and sell them in relatively smaller quantity to retailers. In some cases they also sell goods directly to the consumers if the quantity to be purchased is more. They usually deal with a limited variety of items and also in a specific line of product: like iron & steel, textile, paper, electric appliances, etc. let us know about the characteristics of the distributors. Characteristics of distributors: i.

Distributors buy goods directly from producers and manufacturers.

ii.

Distributors buy goods in large quantities and sell in relatively smaller quantity.

iii.

They sell different varieties of a particular line of product.

iv.

They may employ a number of agents or workers for distribution of products.

v.

Distributors need large amount of capital to invest in there business.

vi.

They generally provide credit facility to retailers.

vii.

He also provides financial assistance to the producers or manufacturers.

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FUNCTIONS OF DISTRIBUTORS a) Collection of goods: A distributor collects goods from producers in large quantity. b) Storage of goods: A distributor collects the goods and stores them safely in warehouse, till they are sold out. c) Distribution: A distributor sells goods to different retailers. In this way he also performs the function of distribution. d) Financing: The distributor provides financial support to producers and manufacturers by sending money in advance to them. He also sells good to the retailers on credit. e) Risk taking: The distributor buys finished goods from the manufacturer and keeps them in warehouse till they are sold.

SWOT ANALYSIS In order to get clear under standing of the position of Diet Pepsi in the various markets I did a SWOT analysis from the data obtained from the survey and the various retailer interviews.

STRENGTHS PACKAGING AND PRICING: - Pepsi has the advantage of having provided the same kind of health based carbonated drink the Slim Diet Pepsi Can which in comparison to the Diet coke is a much more attractive offering because it is slim sleek equally healthy and way cheaper.

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DISTRIBUTION: - As already mentioned Pepsi India has one strongest and most efficient sales and distribution networks not only in India but also throughout the globe. Also in the particular market where the survey was done the sales people have developed network which is powerful enough to make or break sales for Pepsi in any given quarter. P R- One of the most important factors of success of PepsiCo in India is the relationship the company and its constituents have with the channel partners. The Company officials and even the employees of FOBO have very good rapport and relations with the Channel partners. Also the recently introduced retailer benefit schemes such as the gold card membership and other free gifts and offerings not only motivate the retailers but also helped us create visibility for the Slim Diet Can range in a profound. The experience of working with people who welcome us with a smile rather than a frown will always be remembered. NON-CARBONATED:- This is one those strengths of Pepsi that often goes unnoticed but plays a very important role in success of Pepsi in India and even around the globe. The non-carbonated segment is dominated by Pepsi, Tropicana is the market leader in fruit juices. In the mineral water segment, Aquafina clearly outsells Kinley without any fuss. Bottling - Pepsi has the advantage of being in partner ship with the largest bottler in India, the R K Jaipuria Group. RKJ Group controls almost 65% of the bottling operations of PepsiCo in India. At times this is also seen as a weakness of Pepsi in India attributing to the fact that the Jaipuria group is so strong that in certain circumstances it can even defy the parent Company. Pepsi ± Pepsi Cola is the biggest strength of Pepsi as it is the market leader in the Cola segment and clearly outsells both the products the Coca Cola Company

41

namely Coke and Thumbs Up. Pepsi controls almost 60% market share in the Cola segment.

WEAKNESS SECOND MOVER DISADVANTAGE:- Diet Pepsi Cola does have the first mover advantage which Diet Coke has and this may prove to be major shortcoming also in the Agra market no extensive efforts have been made to popularize it. Brand – On a comparative scale Diet Coke proves to have a better brand image in customer mid than. This compels to incur extra expenditure in advertising, Promotion and Sponsorship. MCDONALDS:- This is one of the most important reason why Diet Coke outsells pepsi worldwide and specially in the United States. Similarly in India Diet Pepsi may suffers in sales because of institutional sales. Now Pepsi is trying to bridge this gap in the near future. EXPENDITURE:- Right from the very beginning Pepsi has hired the biggest and the most expensive stars in the country as its brand ambassadors and has spend heavily on advertising which has affected its balance sheet. VIZICOOLERS:- At presently this is one of the biggest problems faced by Pepsi. Pepsi is not able to get refrigerators in India so they have to import it other namely Srilanka, Mauritius etc. Because of this, retailers are facing lots of problems in vizicoolers.They are not able to get new refrigerators, replacement for old ones, even the repair work takes lot of time because at times even the spares are not available on time.

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OPPORTUNITIES Lowest per Capita Consumption:- Even after almost decades of presence in the market there are growth opportunities for Diet Pepsi in India as here the per capita consumption of carbonated beverages is one of the lowest in the world . Health Based : Apart from its Juice based drinks portfolio Pepsi can use the Slim diet can to the maximum by promoting it as a health drink at cheaper prices.

THREATS NGO’S:- NGO’s like CSE can seriously hamper the sales and prospects of companies operating in the industry . This happened during the pesticide controversy involving both coke and Pepsi. HEALTH:- Growing health awareness among people and some of ill effects of carbonated beverages have pursued many people to switch over to non-carbonated beverages that can seriously hamper the long-term prospects of the entire Industry and not Pepsi. ENVIRONMENT:- Environmental concerns are often raised because of the massive amount of water extracted by the bottling plants resulting in the drop in groundwater level which affects the local population adversely. In India Pepsi Co adopted the strategy of growth through intensification. In the intensification strategy, it used market penetration by developing one of the strongest sales and distribution network in the world and utilizing it to the fullest. Pepsi did market development by making the aware of the best products available at their disposal, by using the best technology to produce the products, by properly

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communicating with the customer, and making the customer realize that he is important. Pepsi also explored new markets by venturing new segments like fruit based beverages, sports drinks, snack food division. Pepsi expanded and established itself in the market place by constantly developing new products to the customers like Tropicana, Gatorade and Pepsi Blue. In this way, Pepsi was also able to effectively counter the threats posed by substitutes and new entrance.

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RESEARCH “Comparative analysis of soft drink (pepsico) delivery system between ready base and order base in terms of satisfaction of shop keeper at Bistupur and Sakchi (Jamshedpur)”

45

INTODUCTION There is a comparative market research on Ready Base and Order Base delivery system, which was done by us for S.M.V BREVERAGES LTD, JAMSHEDPUR (A franchise of Pepsi India Ltd.)

OBJECTIVE OF THE STUDY To know the distribution strategy & the response of retailers regarding the soft drinks of PepsiCo. Description of the Field Introduction The field of the study is JAMSHEDPUR town of the JHARKHAND. The study was on the market research on Pepsi customer and also about the retailers. As it is the GREEN CITY of JHARKHAND, this region is very developing with every scope to boost the living

standard of people. As the situation is convenient for our investigation to study “COMPARATIVE ANALYSIS OF SOFT DRINK (PSPSICO)DELIVERY SYSTEM BETWEEN READY BASE & ORDER BASE IN TERMS OF SATISFACTION OF SHOPKEEPER AT BISTUPUR AND SAKCHI(JAMSHEDPUR)”.

As field situation as crucial for the research, I find the field informative for research with the available heads. Field The field of my study covers Bistupur and Sakchi areas of Jamshedpur Town for retailers.

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RESEARCH METHODOLOGY INTRODUCTION  Every research needs a systematic or scientific study so that proper authentic data can be found out.  By systematic it is mean that the study should be best on scientific analysis and follows a proper and logical methodology.  In order to make our research empirically valid and scientifically relevant a proper research methodology has been which caters from research design, research tools, techniques methods, to analysis and proper presentation on data.  In this present study, I have seen in six areas of Jamshedpur town and areas of retailers in Jamshedpur. A consensus was made regarding the methodology to be adopted before going to the field which would be intended with the selected topic.

METHODS OF DATA COLLECTION  Primary Data  Secondary Data Primary Data Collection:Primary data can be collected by three ways: 1. Observation 2. Experiment 3. Surveys

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But here, only survey method of data collection is preferred which is very suitable to reach the researchers motto. Research Instrument: Printer questionnaire was used as the research instrument to collect the required information. Separate questionnaires were prepared for retailers survey and interview was taken by the help of the questionnaire. Area of Survey: The survey was conducted in the different localities of Jamshedpur City. Sampling Plan: - Sampling plan consists of:

a) Sampling Unit: - The retailer of grocery shop, general store, betel shop, medicine store was selected from different place of Jamshedpur. b) Sample Size: - For retailer’s survey 100 retailers were taken as sample size. c) Sampling Procedure: - Cluster sampling producer was followed. d)

Sampling Method: Data were collected by retailers

directly conducted and interviewed at their retail counter.

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survey. The retailer

SELECTION OF SAMPLES When a small group is taken as the representative of the whole, the study is taken as sampling study. The whole group from which the samples have been drawn is technically known as universe or population and the group selected for the study is known as sample. The sample is very small as compared to the universe which may inconvenient yet it fulfills the aim of the topic selected to be studied. As sampling method simple random sampling design was taken. Because the samples or the respondents were selected on the random basis without any bios.

DATA COLLECTION (Tool and Techniques used)

 Data are of two types, i.e. Primary and Secondary. To collect primary data from different source, along with samples, different tool and techniques will be used.  The methods of primary data collection i.e. adopted that present study are interview method (structured), questionnaires method (both open and closed ended) also the observation method.

49

REVIEW OF LITERATURE To explore the reasons behind these developments this study will analyze the marketing initiatives and policies of PepsiCo India in detail with particular focus on its partner relationship management. The above-mentioned objectives can be achieved by carrying a proper and planned research involving different types and methods. The data collected followed the foundations for the study and gave a platform for the analysis and findings which lead to the fulfillment of the objectives. The data collected for research is primary and secondary. Primary data is collected by observation, interviews and questionnaires. While secondary data is collected from the internet through different case studies and reports on the CSD industry. Observation method was carried in Allahabad to know the market position and market share of PepsiCo products. Interviews of people from the sales department were conducted to know the sales and distribution network and marketing policies of PepsiCo India, while questionnaire method was used to know about the customer perception of the slim diet can portfolio. Secondary data is used to know about the CSD industry and the Company i.e. PepsiCo. The data collection and analysis paves way for the recommendation ad conclusion of the study that reveals some important findings regarding the strategy and corporate structure and strategy of PepsiCo India

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HYPOTHESIS TESTING Chi square Test: Chi square test is a very important Non parametric test. It is widely used in understanding the fitness pattern of observed data and expected data. Thus it also called goodness of fit test. It also helps to determine the dependency of categorical variables. Objective: To identify whether there is any dependency of delivery system between ready base & order base at Bistupur and Sakchi (Jamshedpur). Null Hypothesis: “There is no significant difference Ready base & Order base delivery system in terms of satisfaction of shopkeeper at Bistupur and Sakchi (Jamshedpur)” Satisfaction of shopkeeper on delivery system matrix: OBSERVED

Order base

Ready base

TOTAL

BISTUPUR

54

(A)

46

(C)

100

(x)

SAKCHI

53

(B)

47

(D)

100

(y)

93

(Y)

200

(T)

107

EXPECTED

(X)

Order base (A’)

Ready base

BISTUPUR

53.7

46.5

SAKCHI

53.5 (B’)

46.5

107.2 (X’)

93 (Y’)

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(C’) (D’)

TOTAL 100.2 (x’) 100 (y’) 200.2

Formula: Expected Frequency:

(X X x)/T

Group

Observed

Expected

(O-E)

(O-E)2

(O-E)2/E

A

54

53.7

0.3

0.09

0.0016

B

53

53.5

-0.5

0.25

0.0046

C

46

46.5

-0.5

0.25

0.0053

D

47

46.5

0.5

0.25

0.0053

χ2 = ∑(Oij – Eij)

= 0.0168

Eij

INTERPRETATION: At 95% of confidence level with (c-1)(r-1) = 1 degree of freedom the tabulated value is 3.87 Our value is 0.0168